Jan. 5, 2012
Statements from NASCUS President and CEO Mary Martha Fortney on GAO Report Regarding NCUA
Arlington, Va. On. Jan. 4, the U.S. Government Accountability Office (GAO) released a report addressing credit union failures and NCUA's responses to those failures as well as implementation of Prompt Corrective Action (PCA).
GAO recommended that NCUA consider improvements to PCA that would require early and forceful regulatory action and make recommendations to Congress on how to modify PCA, as appropriate. As required by the Credit Union Membership Access Act (CUMAA), NCUA is directed to work with state regulators on PCA (and member business lending).
"The GAO's recommendation offers state and federal regulators a valuable opportunity to evaluate current PCA standards," said NASCUS President and CEO Mary Martha Fortney. "Before this recent economic crisis, it was difficult to evaluate the effectiveness of PCA standards. But now, state and federal regulators can take a comprehensive and meaningful look at PCA and lessons learned from credit union failures. This also offers NCUA and state regulators a chance to act on capital reform and supplemental capital for credit unions in an effort to modernize the archaic capital system for credit unions."
NASCUS: Kate Hartig, VP, Public Relations and Legislative Affairs, (703) 528-0669 or email@example.com